The Essential Role of Recessions

Alan Reynolds, at the Wall Street Journal:

A reporter on Fox News recently asked, "Which presidential candidate is most qualified to turn the economy around and avoid a recession?" The quick answer is: none.

No candidate will become president soon enough to matter, and to ask the question is to presume that recessions can and should be avoided. But some business mistakes require time to be fixed. Too many houses were built in some areas, so prices have to fall to discourage more building and encourage more buying. Some banks made too many bad loans, so they need to become more cautious...

update: Walter Williams